Royal Dutch Shell, PetroChina joint venture considers building plant on Origin's site- source

August 27
9:00 AM 2013

Arrow LNG, the Australian joint venture firm of Royal Dutch Shell and PetroChina, would consider building its liquefied natural gas plant on Origin Energy's site. Origin Energy is a rival company of Arrow LNG. A source told Reuters that Arrow had already talked with Origin about using the site which the latter had originally reserved for the expansion of its AUD 24.7 billion or USD 23.8 billion plant in Curtis Island.

The source also revealed that Arrow would want to build a plant that has production and liquefaction facilities for coal seam gas. It also preferred to have these projects under its control. Industry observers, however, said that should the alliance push through, Arrow would most likely sell its gas to Origin. The source said there were "no serious discussions" about such arrangement during the talks.

Reuters reported that selling gas without having to build an expensive LNG plant would be a favorable strategy for shareholders. This would enable them to enjoy maximum returns in the short term.

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